The world’s largest pension fund lost the equivalent of Bitcoin’s entire market capitalization in just three months


The world’s largest pension fund lost USD 164.7 billion in the first quarter of 2020. This is equivalent to the entire market capitalization for Bitcoin (BTC).

Bitcoin didn’t do any better
The Government of Japan Pension Investment Fund, or GPIF, decreased in value by almost 11% to 150.63 trillion yen or USD 1.4 trillion. This was the largest quarterly decline in the fund since 2008.

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The GPIF was not alone in its poor performance, major stock indices such as Dow Jones published negative numbers. Interestingly, Bitcoin’s performance was almost identical, with its price from January 1 to March 31 falling by approximately the same 11%.

How crypto-currency funds work
Therefore, this is not a case where Bitcoin supporters can defend Bitcoin’s perceived safe haven status. On the other hand, if GPIF had invested only 0.1% of its assets under management or USD 1.5 billion in Bitcoin, at the beginning of Q1, this would have created extreme buying pressure on the market. The likely result: an upward trend for Bitcoin Up and positive returns for the cryptomonetary portion of the pension fund’s portfolio.

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However, this would have been a highly unlikely scenario. Pension funds are, of course, some of the most conservative investors. Buying $1.5 billion worth of Bitcoin – about 208,000 BTC – in a short period of time would have been an almost impossible task.

Grayscale’s GBTC fund currently holds 420,000 BTC.